Research On Strategies For ICBC To Deal With The Internet Financial Challenges

In recent years, relying on a new generation of Internet technology, such as mobile payment, big data, cloud computing, social networks and search engine, Internet enterprises gradually infiltrate their services into the traditional financial field, The internet financial models, such as the third-party payment platform, small loan based on e-business network platform, Peer to Peer, Yu E Bao (a money-market fund promoted by Alipay), Wechat bank are emerging. The rapid development of Internet finance, leading to that commercial banks is no longer the only channel for customers to deposit, loan, exchange money, forcing commercial banks to accelerate the pace of reform in the aspects of customer marketing, trading services, business development, internal management mode, at the same time the accelerating integration of Internet and Finance will also create a lot of new financial service demand.In this background, this paper summarizes the concepts, characteristics and theoretical basis of the Internet finance, introduces the current development situation and future development trend of five kinds of Internet financial mode which are the third-party payment platform, small loan based on e-business network platform, Peer to Peer, Crowdfunding and Yu E Bao (a money-market fund promoted by Alipay). Based on above summary, this paper will deeply analyze the impacts of Internet finance on commercial banks in the aspect of deposit of bank, indirect financing, payment of transaction, business model and financial disintermediation. At last, based on the analysis that using the SWOT method to analyze the advantages and disadvantages, the opportunities and challenges of commercial banks in the Internet financial competition environment, this paper will put forward some strategies for ICBC to deal with the Internet financial challenges, hoping to provide some new ideas for ICBC to form new competitive advantage under the age of the Internet.There are five chapters in this paper. Chapter one is the introduction, which includes the background and significance of this research, the review of relative literature, the main research contents and methods, the structural arrangement of the paper. Chapter two is an overview of the Internet finance, which contains the relative concepts, characteristic and theoretical basis of its development, the Internet financial models, the current development situation and future development trend. Chapter three is the impacts of Internet finance on commercial banks, mainly analyzing the impacts on commercial banks in the aspect of deposit of bank, indirect financing, payment of transaction, business model and financial disintermediation. Chapter four is the SWOT analysis for commercial banks to deal with Internet finance, mainly analyzing the advantages and disadvantages, the opportunities and challenges of commercial banks in the Internet financial competition environment, which provide scientific basis for commercial Banks to establish related coping strategies. Chapter five is the strategies of ICBC to deal with Internet finance, which includes the existing practical measures of ICBC in the field of Internet finance, the future development orientation and ideas.